Coinbase may withdraw support for the CLARITY Act due to stablecoin reward ban

MarsBitNews · 2026-01-12T03:43:52+00:00

Coinbase is pressuring U.S. lawmakers to oppose provisions in the CLARITY Act that restrict decentralized finance, fearing that stablecoin rewards could impact its revenue. The banking industry has also expressed concern about this risk, attempting to prevent funds from flowing into the crypto sector through legislation.

MarsBitNews

2026-01-12 03:43:52

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Mars Finance reports that on January 12, the U.S. cryptocurrency exchange Coinbase is increasing pressure on American lawmakers to oppose proposals in the main cryptocurrency bill called the CLARITY Act that would ban certain decentralized finance provisions. Bloomberg, citing sources familiar with the matter, states that if the bill restricts stablecoin issuers from offering rewards on platforms like crypto exchanges, Coinbase may reconsider its support for the bill. Banking industry groups are concerned that stablecoin rewards and yield products could divert trillions of dollars from the traditional banking system. The GENIUS Act, passed in July 2025, prohibits stablecoin issuers from providing interest or yields to holders but does not explicitly ban third parties like crypto exchanges from offering rewards. Currently, the banking sector is trying to close this loophole through the CLARITY Act. Stablecoins have become Coinbase’s main revenue source, contributing nearly $247 million in the fourth quarter of 2024. The U.S. Senate Banking Committee is expected to discuss this issue at a meeting this Thursday. (Cointelegraph)

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